(1)If, with respect to a building society [F2which has a permission under Part IV of the Financial Services and Markets Act 2000 to accept deposits, the Authority] considers it expedient to do so in order to protect the investments of shareholders or depositors, it may either—
(a)direct the society, within a specified period, to transfer all its engagements to one or more other building societies under section 94; or
(b)direct the society, within a specified period, to transfer its business to an existing company under section 97.
[F3(2)If it appears to the Authority that a society has failed to comply with a direction under subsection (1), the Authority may exercise its power under section 45 of the Financial Services and Markets Act 2000 in relation to the society (power to vary or cancel a Part IV permission on the Authority’s own initiative).
(2A)Subsection (2) does not affect the Authority’s ability to exercise that power, in relation to the society, on any other ground.]
(3)Where the [F4Authority]—
(a)gives a building society a direction under subsection (1)(a) above; or
(b)does not give a building society such a direction solely because the society is already seeking to transfer all its engagements to one or more other building societies under section 94,
the [Authority] may, if it considers it expedient to do so in order to protect the investments of shareholders or depositors, direct that, instead of resolving to transfer its engagements by the two resolutions required by section 94(2) (with or without the additional resolution required by section 94(3)), the society may resolve to do so by a resolution of the board of directors.
(4)Where the [F4Authority]—
(a)gives a building society a direction under subsection (1)(b) above; or
(b)does not give a building society such a direction solely because the society is already seeking to transfer its business to an existing company under section 97,
the [F4Authority]may, if it considers it expedient to do so in order to protect the investments of shareholders or depositors, direct that, instead of approving the transfer and the terms of the transfer by the two resolutions required by section 97(4)(c), the society may approve the transfer and those terms by a resolution of the board of directors.
(5)A direction under subsection (3) or (4) above—
(a)shall be in writing;
(b)may be given subject to such limitations or conditions as the [F4Authority] may think fit; and
(c)unless renewed by a further direction, shall cease to have effect at the end of the period of 90 days beginning with the day on which it is given.
F5(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(7)In Schedule 8A to this Act—
(a)Part I (which contains provisions modifying sections 94 to 96 and Schedule 16 to this Act) shall apply where a direction is given under subsection (3) above; and
(b)Part II (which contains provisions modifying sections 97 to 100 and Schedule 17 to this Act) shall apply where a direction is given under subsection (4) above.
(8)The [F6Treasury] may make regulations for the purpose of specifying, as prescribed matters—
(a)the matters of which statements under paragraph 3 of Schedule 8A to this Act are to give particulars; and
(b)the matters of which statements under paragraph 9 of that Schedule are to give particulars.
(9)The power to make regulations under this section is exercisable by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.]
Textual Amendments
F1S. 42B inserted (9.6.1997) by 1997 c. 32, s. 17(1); S.I. 1997/1427, art. 2(c)
F2Words in s. 42B(1) substituted (17.8.2001 for specified purposes and otherwise 1.12.2001) by S.I. 2001/2617, arts. 2, 8, 13(1), Sch. 3 Pt. II para. 145(a) (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)
F3S. 42B(2)(2A) substituted (17.8.2001 for specified purposes and otherwise 1.12.2001) for s. 42B(2) by S.I. 2001/2617, arts. 2, 8, 13(1), Sch. 3 Pt. II, para. 145(b) (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)
F4Words in s. 42B(3)(4)(5) substituted (17.8.2001 for specified purposes and otherwise 1.12.2001) by S.I. 2001/2617, arts. 2, 8, 13(1), Sch. 3 Pt. II para. 145(c) (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)
F5S. 42B(6) repealed (1.12.2001) by S.I. 2001/2617, arts. 2(b), 13(2), Sch. 4 (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)
F6Word in s. 42B(8) substituted (17.8.2001 for certain purposes and otherwise 1.12.2001) by S.I. 2001/2617, arts. 2, 8, 13(1), Sch. 3 Pt. II para. 145(e) (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(1)
Modifications etc. (not altering text)
C1S. 42B(8): Functions of Building Societies Commission transferred (1.12.2001) to the Treasury by S.I. 2001/2617, arts. 2(b), 4(1), Sch. 1 Pt. III; S.I. 2001/3538, art. 2(1)